Do you need a merchant account for an online tobacco company?

May 09, 2014

Globalization is the newest thing in the business world. How can one get their product into everyone’s hands all over the world? Many people are also changing the way that they shop. Consumers have found a way to obtain what they are looking for without leaving home, and they can do it no matter where their home is.

One of the things that have become unpopular to have within your own place of business is tobacco. There are many who still use tobacco; however, it is becoming less and less accepted in mainstream society. This means that there is a new market opening its doors wider than ever before, online tobacco sales.

Selling tobacco is not as easy as gaining stock, taking a picture, adding a price, and posting it on a website. There are rules that need to be looked into based on your location, as well as things that you need to know just to have a merchant account for an online tobacco company.

It is imperative to note that the sale of tobacco items can impede your ability when process many other credit transactions inexpensively. For this reason, you may be forced to use services that require higher fees and remove a large portion of your profits.

One thing that can help a merchant when wanting to learn the basics of tobacco and selling it, one can attend a class. These classes are usually sponsored by whoever is in charge of the regulations. In many states, it is the Board of Equalization (BOE). These classes can help individuals to understand the state requirements as well as the necessary responsibilities of being a vendor.

Finding the right people to help you maintain a merchant account for an online tobacco company can make all the difference in success or failure. Due to many continuous health problems in regard to tobacco, the regulations have become more rigorous. Having someone to keep up to date with the regulations and government scrutiny for tobacco sales can help you to worry about other parts of the online company.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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